Babcock & Wilcox Receives Full Notice to Proceed on $2,4 Billion Power Generation Project for Base Electron to Supply Power to Applied Digital AI Factory Campuses
- Project Will Deliver 1.2 GW of New Generation Capacity Through Four 300-MW Natural Gas Boilers and Steam Turbine Generators
- Siemens Energy Formally Released to Proceed with Steam Turbine Supply
- Base Electron Evaluating Option for an Additional 1.2 Gigawatts of Power
AKRON, Ohio–(BUSINESS WIRE)–Babcock & Wilcox (B&W) (NYSE: BW) announced today that it has received full notice to proceed on a $2.4 billion design-build agreement with Base Electron, an independent power producer (“IPP”) backed by Applied Digital (NASDAQ: APLD), to deliver 1.2 gigawatts (GW) of new generation capacity. The generation is intended to supply power to Applied Digital AI Factory campuses under separate power supply agreements. The project includes four 300-megawatt natural gas-fired boilers and steam turbine generator systems.
Kenneth Young, B&W Chairman and Chief Executive Officer, said:
Receiving full notice to proceed for this $2.4 billion project further underscores the strategic role B&W plays in supporting the rapidly expanding power needs of large‑scale AI data centers,
Base Electron, backed by Applied Digital, is focused on developing and owning generation assets that deliver new, dispatchable capacity to the grid and to contracted customers, including power supply agreements supporting Applied Digital’s high-density AI data center campuses.
Under its agreement with Base Electron, B&W will engineer, procure and construct the facility, with engineering and manufacturing activities already underway. Siemens Energy, Inc. (Siemens Energy) has been formally released to design and supply the steam turbine generator sets.
Kenneth Young, B&W Chairman and Chief Executive Officer, said:
Receiving full notice to proceed for this $2.4 billion project further underscores the strategic role B&W plays in supporting the rapidly expanding power needs of large‑scale AI data centers,
“Our natural gas-fired boilers and related technologies – as well as steam turbines supplied through an agreement with Siemens Energy – provide the reliable, high‑capacity energy generation on a schedule that is required for the grid today.”
Young added,
With data processing demand growing at an unprecedented pace, B&W is uniquely positioned to provide the proven, flexible and redundant power solutions these mission‑critical operations require and deploy them faster than traditional combined-cycle or simple-cycle gas technologies,
“This contract further reinforces our commitment to providing technologies that meet the urgent demand for reliable and secure power.”
Wes Cummins, Chairman and Chief Executive Officer of Applied Digital, said:
This project represents to us a critical step in turning power into operational AI capacity,
“Base Electron’s development of dedicated, reliable generation is intended to support our long-term campus strategy and reinforce our disciplined approach to scaling AI infrastructure. As a customer of Base Electron, securing stable, dispatchable power through partnerships with IPPs is foundational to meeting the growing demands of our campuses. We believe B&W’s decades of experience in large-scale steam generation and project execution make them a strong partner as we advance this platform. Additionally, we are evaluating an option with Base Electron for another 1.2 GW of generation capacity to support future development.”
Tobias Panse, Senior Vice President for Industrial Steam Turbines and Generators at Siemens Energy, said:
Siemens Energy is proud to support B&W and Base Electron on this important project by supplying our advanced steam turbine generator technology,
“Our solution is engineered to deliver the performance, reliability and efficiency required for a facility of this scale and strategic importance, ensuring long-term operational excellence and sustained value for our partners.”
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Babcock & Wilcox Receives Full Notice to Proceed on $2,4 Billion Power Generation Project for Base Electron to Supply Power to Applied Digital AI Factory Campuses, source
